1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) announced its first-quarter 2020 financial results for the period ended October 31, 2019. Total revenues for the quarter for 1933 were $3.9 million, down 26% from its previous quarter, mainly due to the decline in market share for vape and distillate sales in the recreational market in Nevada. The company said that vaping accounts for 25% of cannabis sales in Nevada while the nationwide decline was 15% during the first week of September, at the state level, Nevada saw a drop of 32% in vape sales.
The net loss for the quarter was $3.8 million, which was lower than the fourth-quarter net loss of $5.6 million. 1933 said in a statement that the decrease in the net loss was due to company-wide cost-cutting measures in order to cut expenses. “All non-essential consulting services were cut as the company remains committed to achieving profitability and increasing shareholder value. Adjusted EBITDA loss was $1.8 million for Q1 2020 compared to $1.0 million for Q1 2019. Expenses were $5.9 million for Q1 2020 and $4.7 million for the same period in 2019.”
“Company revenues for Q1 2020 were impacted by lower than expected sales from vape products, largely attributed to the rampant use of vitamin E acetate in black market products,” said 1933 CEO Chris Rebentisch. “Despite weakness in this segment, we anticipate a recovery in vape sales across both our AMA and Infused subsidiaries as well as the demand in the supply chain for distillate normalizing in Nevada in early 2020. With over 100+ SKUs across 5 product lines as intellectual property and 8 licensing partners, we believe that our diversified product portfolio and product mix will aid us in sustaining our future growth.”
He went on to add, “Cannabis sales continue to remain